The market has made a major change in direction. Years ago, home care providers competed for business as independents, one on one for sales, and had more than their share of success doing that. Today, a great number of these same independents depend on the largesse of third-party payors. These dealers seek more Medicare and Medicaid patients, and the dollars they produce. They also look to establish themselves with managed care organizations.

The business developed by Medicare, Medicaid, and managed care is not a problem. These third parties are all excellent sources of revenue. But is there a sufficient number of profit dollars being produced by these sales to make them worth fighting for?

What is it that dealers need the most? Profit dollars! Somewhere along the line some dealers have lost their perspective and, rather than recognizing what is left on the bottom line each year as their goal, they seek more and more volume. Again, it is not volume that dealers need, it is profits, net profits. Dealers do need volume, but this must be accompanied by adequate profit dollars or the sales are valueless.

So, to whom do you turn to help find these profit dollars? To the manufacturer’s sales representative!

The direct salespeople and the rep groups who handle several lines are all important for the continued growth of your business. They can help you find the sales that are out there but are missed because you are not aware of them.

The role of the direct salesperson (working exclusively for the manufacturer) is to educate you and train your staff about the entire line of the company they work for. These salespeople will offer to hold training classes for your sales team. They will provide literature and demo material. They will participate with you in developing marketing programs. They will make joint calls with your salespeople if you give them enough advance warning. All this will enable your staff to then close sales more easily. Armed with knowledge, your staff will be able to seek out potential new customers.

The company the direct salesperson represents has spent a great deal of money training that person. Each should be welcomed and treated as a guest when they call. Allow them to share with your staff all that they have learned.

The manufacturer rep groups play a similar role, but they each offer a variety of product lines. They may not have the same depth of knowledge regarding a particular item that the direct salesperson has, but they know where to go to obtain the information. They will get anything you seek, they will work for you, but you must ask.

When I ran a branch for a major distribution company, we held weekly sales meetings and we would always set aside time for reps to speak to our sales staff. I cannot tell you how many extra sales our staff made over the years as a result of these meetings. More important was the exchange of information between our salespeople and the reps that led to the ability to close many an extra sale. It became teamwork.

As our industry has changed in recent years, DME/HME dealers find they have to spend many additional hours handling Certificates of Medical Necessity and working within constraints (interum payment system, prospective payment system, inherent reasonableness, consolidated billing, competitive bid programs). They find little time to spend with sales reps and this is wrong. An active dealer who wishes to expand his sales and profits must find time to listen to the reps when they call.

Dealers have to know what is happening with product lines that can impact on their business. The reps will tell you where they have demonstrated their wares and what the response was. When you hear this, it behooves you to make a follow-up call to the same referral source and advise them that you are able to provide these products.

Aggressive dealers have invited staff from these referral sources to visit their location. Some dealers have gone as far as asking them to have lunch in their showroom where they meet the salespeople and the service people. This can develop long-term relationships and can mean new sales opportunities.

When salespeople, direct or manufacturer’s reps, call on you, please give them your time. Their time is as valuable as yours and every extra minute they stand about waiting to see you costs them dollars. If you are so busy that you cannot take the time, make an appointment to see the sales reps.

They all deserve your loyalty, because they not only work for a manufacturer, but they work for you as well. Remember, the manufacturer’s rep or the company direct sales rep is bringing information to your customers and to your staff and when you work with them, it is a “win-win” situation. Welcome the sales reps to your location.

Sheldon Prial is president of Homecare Providers Co-op in Melbourne, Fla. He can be reached at (800) 356-0990.